Operational Guidelines for National Pension Scheme Tier II- Tax Saver Scheme, 2020 (NPS-TTS)
PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016
Ph : 011-26517501, 26517503, 26133730
Fax : 011-26517507
Website : www.pfrda.org.in
File No:PFRDA/10/01/1/0003/2018-PDES
Date: 17th August 2020
To
All Stakeholders
Subject: Operational Guidelines for National Pension Scheme Tier II- Tax Saver Scheme, 2020 (NPS-TTS)
In terms of the Government of India Notification No.45/2020/F,No.370142/26/2019-TPL dated 7th July 2020, the following operational guidelines are being issued in respect of National Pension Scheme Tier II-Tax Saver Scheme,2020 (NPL-TTS).
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SI |
Particulars |
Details |
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| 1 | Eligibility | Any Central Government NPS subscriber | ||||||||
| 2 | Lock-in period | 03 years from the date of unitization of contributions by CRA | ||||||||
| 3 | Account Types | Tier I – mandatory pension a/c
Tier II – optional a/c and freely withdrawable Tier II (Tax Saver) – optional a/c with 80C benefit |
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| 4 | Investment Choice & Pattern | No investment choice to the subscriber. It will be a composite scheme with the following investment limits for the Pension Funds”
* Investment guidelines as applicable for E-I ** Investment guidelines as applicable for G-II and C-II |
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| 5 | Choice of Pension Fund | Subscriber can choose any pension Fund
Subscriber will be allowed to have maximum 03 pension funds, separately for NPS-TTS. PF change will be allowed after the lock-in period. Such re-investments will be treated as fresh investments and will be again locked-in for 03 years |
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| 6 | Withdrawals | No withdrawals will be allowed during the lock-in period.
However, in case of death of subscriber, the corpus can be withdrawn by the nominee/legal heir. |
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| 7 | Exit/Premature Closure | In case of closure of Tier-I account due to exit from NPS, contributions to NPS-TTS will not be allowed and NPS-TTS will be closed after completion of lock-in period. | ||||||||
| 8 | Minimum/Maximum Contributions,charges, Operations, Others | Same as Tier-II – Optional a/c which is freely withdrawable and has no tax benefits |
(Mono Phukon)
General Manager.